(USA) Ford joining forces with GM

[Auslandau]

As reported in this months "Mustangs Monthly', a small article in the 'news' section, also appearing in "American Automotive news"

"senior executives within Ford and GM have explored the possibility of an alliance, even a merger, in the near future. Although the idea of a Ford/GM alliance may seem odd at first glance, one only needs to look at the tremendous stake each company has in the other's continued existence. The most potentially catastrophic scenario would include GM or Ford declaring bankruptcy, leaving their mutual parts suppliers blowing in the financial winds and subsequently cutting off the other from much-needed materials. It could be argued that both would go down and quickly."



Well......that would be different! :



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[FPV8U]

Originally Posted by auslandau

As reported in this months "Mustangs Monthly', a small article in the 'news' section, also appearing in "American Automotive news"

"senior executives within Ford and GM have explored the possibility of an alliance, even a merger, in the near future. Although the idea of a Ford/GM alliance may seem odd at first glance, one only needs to look at the tremendous stake each company has in the other's continued existence. The most potentially catastrophic scenario would include GM or Ford declaring bankruptcy, leaving their mutual parts suppliers blowing in the financial winds and subsequently cutting off the other from much-needed materials. It could be argued that both would go down and quickly."



Well......that would be different! :

As strange as it would be... Could work quite well for both companys.

[TomXY]

that would suck, nothing to argue over then.

[Smoke Pursuit]

Wouldnt be a bad thing for us here in Australia, Fords super cool straight 6 / Turbo 6 and GMs V8's, really couldnt go wrong.

[XAGSV8]

They have to do it or we won't be seeing them later. They need to do something with that dumba$$ union over there too that is helping in sinking both company's.

[Lukeyson]

yeah it reminds me of that movie 'demolition man' , where in the future all food restaurants are called Taco Bell, soon all car companies will be called one or two brand names

[starkersEB]

My old man was saying the same thing to me the other night, he just came back from the states and was saying he can see why, the only fords he saw were F trucks and a few muzzys. Lots of imports though from korea, japan etc.. I dont like it but I say a merge is a hell of a lot better than bankruptcy

[AWD Chaser]

I think that even if there was a merger, it would purley be finacial. All brands would remain the same, therefore we would still have Holden, Ford, HSV and FPV. The only difference is that there would be a shared RWD architecture, and maybe gearboxes too. I reckon there would still be BOSS engines and GenIV+ engines... keeps competition going, otherwise, then Ford/GM would be up against the euopean compaines rather then themselves. Makes sense though... especially given the circumstances down here - eg. Ajax, etc...

[csv8]

Henry would spin in his grave.

[Ruger]

henry would be turning like a lathe.

but in all seriousness gm and ford make some very similar cars that fight each other they would work beter together and learn from mistakes each have made *cough gm 6 bangers*

[XR Martin]

I doubt it would be a merger like Chrysler and Mercedes.
But they may share components, and work on new technologies together, like hybrids.

[Powdered Toast Man]

I think Ford & GM drivetrain are already working together designing gearboxes.

Yeah, soon the only difference between cars will be how they look. All the engineering will be shared between them all.

[S3SR]

does this mean we could go to either a holden or ford dealership depending on who has the cheaper price??? and get our car serviced at the better of the two??

[Auslandau]

I rekon it would be more like Holden and Daewoo type set up. Swapping cars and re badging. Seperate 'companies' under one banner. It does make sense I suppose as the number of car manufactuers are shrinking.



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[M14A-Mclaren]

My boss gets that mag, I'll have to read that if he has it yet.

[Auslandau]

Not worth buiying just for the article though. 1 paragrapgh, down bottom inside 5 page. Doesnt let on too much.



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[aussiblue]

see http://www.fool.com/investing/genera...rican-car.aspx

Perhaps the most unholy of suggestions is to seriously consider a merger between GM and Ford. Reports surfaced a few months ago that the two had talked right after GM's merger talks with Renault fell through, and a single, large American automaker might be just the thing to return the luster and shine to the chrome bumper of the American car market.

[aussiblue]

http://www.blackenterprise.com/yb/yb...lackenterprise

General Motors (GM) weighed on the Dow after an executive said the automaker is open to a deal with rival Ford

[aussiblue]

http://iblsjournal.typepad.com/illin..._mergeral.html

Automotive News recently reported that General Motors Corp. and Ford Motor Co. have discussed a possible merger or alliance.[1] Neither company will comment on the talks [2], leading some followers to believe the reports are mere "speculation" and reflect "[n]ostalgia for the glory days of the American automobile industry."[3] Nostalgia and speculation aside, the merger/alliance rumors are enough to incite the interests of industry followers and American car buyers as to the possible benefits of such a relationship.

and

Automotive News reported early this morning that

The supposed talks between the two Detroit titans began sometime in July, soon after Rick Wagoner and Carlos Ghosn began investigating the benefits of a GM/Renault/Nissan threesome. The sources cited by Automotive News have not been able to confirm who opened the door to the talks, with one insider saying that Wagoner was the instigator, while another source disputes that assertion. It is known that a possible merger was discussed between the General’s CFO, Fritz Henderson and Don Leclair, Ford’s own CFO sometime in August.

Although the idea of a Ford/GM alliance may seem odd at first glance, one only needs to look at the tremendous stake each company has in the other’s continued existence. The most potentially catastrophic scenario would include GM or Ford declaring bankruptcy, leaving their mutual parts suppliers blowing in the financial winds and subsequently cutting off the other from much-needed materials. It could be argued that both would go down and quickly.

at http://www.outsidethebeltway.com/arc...ssion_rumored/

[Auslandau]

Well the only thing to debate about then would be that Ford owns GM or GM owns Ford.....



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[aussiblue]

I vote to call the new Oz model the "Falcadore" rather than the 'Commode can".

[Dave_au]

Toyota has been making a few acquisitions of late - when GM sold it's share of Fuji Heavy Industries, the company that has the controlling stake in Subaru, Toyota snapped it up without hesitation, despite Subaru having 1/3 the profit margin across the board that Toyota has.

[RIPGMH]

The whole Ford vs. Holden/GM thing would pretty quickly diffuse if this were to happen. Maybe I take the whole thing too seriously but I think it would take some of the passion out of it, I don't buy Ford's because I think they are the best value for money I buy them to see the look on some GMH homo's face when I wipe the floor with his boat anchor.

[aussiblue]

Automotive News wrote:

Last month, GM CFO Fritz Henderson discussed an alliance with Ford CFO Don Leclair, said a source familiar with the talks.

But it is not at all clear whether the negotiations will bear fruit. As of now, the two companies are not holding talks, and one source says there’s a slim chance that anything will come of it.

Such a move seems highly unlikely to us as well. And considering the state of affairs at G.M. lately, it brings to mind the old saying about the two drowning swimmers in a watery embrace.

But the talks, if they occured, are notable if only because they underscore how serious Ford’s predicament is considered to be these days.

http://dealbook.blogs.nytimes.com/20...ord-gm-merger/

Looks like it's off for now at least.

[aussiblue]

Talk of Ford-GM merger dismissed


by HANK DANISZEWSKI -- London Free Press posted September 18, 2006

Canadian Auto Workers president Buzz Hargrove has dismissed a report that Ford and GM executives met over the summer to talk about a merger or alliance.

"I don't think there's anything to it. A merger wouldn't strengthen them. Instead of two weak companies you would have one big weak company," he said.

Automotive News, an American trade journal said the chief financial officers of General Motors Corp. and Ford Motor Co met this summer to talk about an alliance.

One analyst, who asked not to be named, said the talk of a merger in the Automotive News story was off-base.

He said rival auto executives sometimes get together just to discuss research on new innovations or mutual cost-costing measures.

"Common-sense issues that both sides need would qualify as a potential candidate," said the analyst.

GM spokesperson Brian Akre confirmed the company gets together with competitors to discuss areas of "mutual interest."

"As a policy, we do not confirm or comment publicly on those private discussions, which in many cases do not lead anywhere," said Akre.

A Ford spokesperson declined any comment on the report.

The report comes as GM and Ford have been slashing their workforces and closing plants in efforts to reverse multibillion-dollar losses. Their sales have been hurt by competition from more fuel-efficient models from Asian automakers.

Talk of alliances involving GM came after GM shareholder Kirk Kerkorian, who owns a 9.9 percent stake in the company, called for GM, Renault and Nissan to pursue an alliance.

Carlos Ghosn, the chief executive of Renault and Nissan, has said the benefits from an alliance would be similar to the gains from the Renault-Nissan alliance, which have included cost savings from joint purchases of auto parts.

Ford earlier declined to comment on an August Wall Street Journal report that then-Chief Executive Bill Ford approached Ghosn about a Ford alliance with Renault and Nissan.

GM shares fell 26 cents to $31.40 in afternoon trading on the New York Stock Exchange, while Ford shares fell 25 cents to $7.77.

from http://www.autonet.ca/News/Story.cfm...61336-sun.html

[Falc'man]

Originally Posted by TomXY

that would suck, nothing to argue over then.

Haha, took the words right outta my mouth.

[Bossxr8]

Ford and GM have already started collabarating on a number of projects, most recently a joint venture to design and build 6 speed autos for FWD small and medium cars. This is the most involvement you will see between them, they will never merge, there is no point, but joint venture operations to design and build gearboxes and such is an excellent way to save on development costs.

[4.9 EF Futura]

Not even sure if its a great idea.

Take two unhealthy companies, merge them and what are you left with?

Anyone remember a little glitch that went by the name of HIH insurance... sure, wasnt purely FAI that killed it... but it made a significant contribution to the failure...